Mortgage Rates Were Up on Friday as the Jobs Report Showed the Signs of a "Trump Effect"
Mortgage rates were slightly higher on Friday. Meanwhile, the U.S. economy added 227,000 jobs in the month of January, beating expectations and providing evidence that the "Trump effect" on animal spirits has had an early economic impact.
The average 30-year mortgage rate rose four basis points, to 4.08%, on Friday, which equates to a $482.04 monthly payment per $100,000 borrowed (one basis point equals one-hundredth of a percentage point). A month ago, the equivalent payment was lower by $1.74.The average 15-year mortgage rate rose one basis point, to 3.23%, equating to a $701.70 monthly payment per $100,000 borrowed. A month ago, the equivalent payment was the same.
Rate (national average) |
Today |
1 Month Ago |
---|---|---|
30-year fixed jumbo |
4.48% |
4.57% |
30-year fixed |
4.08% |
4.05% |
15-year fixed |
3.23% |
3.23% |
30-year fixed refi |
4.11% |
4.09% |
15-year fixed refi |
3.25% |
3.25% |
5/1 ARM |
3.26% |
3.39% |
5/1 ARM refi |
3.33% |
3.60% |
The January report was broadly positive with 227,000 workers added to payrolls, surpassing the consensus forecast of 175,000. As the following graph shows, the figure for January (blue line) is above the trailing 12-month average of 195,000 (red line):
While their ardor appears to have cooled somewhat since the actual handover in power, stock and bond market investors took a very buoyant view of economic prospects under the new administration. The narrative was that a businessman in the highest office would act decisively to boost American businesses, and that was plainly enough to raise "animal spirits." Today's data suggests the "Trump effect" probably had a genuine economic impact, but investors need to "watch the downside," too.
By: Robert Bobby Darvish of Platinum Lending Solutions of Orange County
No comments:
Post a Comment